Balance on Goods and Services

Definition

The balance on goods and services refers to the difference between a country's exports of goods and services and its imports of goods and services. It is a component of the current account in the balance of payments.

Related terms

Trade Surplus: A trade surplus occurs when a country's exports exceed its imports, resulting in a positive balance on goods and services.

Trade Deficit: A trade deficit occurs when a country's imports exceed its exports, resulting in a negative balance on goods and services.

Current Account: The current account is the sum of the balance on goods and services, net income from abroad, and net transfers. It measures the flow of funds into or out of a country due to international transactions.